PFE’s decline yesterday, in our opinion, reflects a mix of overly optimistic expectations and a rotation out of large-cap defensive stocks rather than a fundamental shift in management’s strategy or PFE’s outlook. PFE reduced guidance by $0.06/shr primarily as a result of non-operational issues including $0.02 of dilution from timing of the Zoetis (ZTS) IPO, $0.02 from the Venezuelan devaluation, and $0.02 from incremental Fx fluctuations (primarily weakness in the yen). PFE’s continued cost discipline and guidance for share repurchase in the “mid-teen billions” should drive average EPS growth of 4% (2013E-19E, CAGR) including dilution from the ZTS IPO.

That’s from a note this morning by Leerink Swann analyst Seamus Fernandez. He added:

Though we continue to see little downside in PFE shares from here and applaud management’s execution on its long-term strategy, our DCF valuation of $26-27/share (vs. $25/share previously) suggests to us that PFE remains a compelling safe haven but is more likely to perform in line with the market.

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Earnings reports, corporate strategies and analyst insights are all part of what moves stocks, and they’re all covered by the Stocks to Watch blog. We also look at macro issues, investor sentiments and hidden trends that are affecting the market. Stocks to Watch gives you the full picture of the U.S. stock markets, all day long.

The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.